Ero Copper Corp. | ||||||||
By: | /s/ Deepk Hundal | |||||||
Name: Deepk Hundal | ||||||||
Title: SVP, General Counsel and Corporate Secretary | ||||||||
Date: March 7, 2024 |
Exhibit Number | Description of Document | |||||||
TABLE OF CONTENTS | |||||
BUSINESS OVERVIEW | |||||
HIGHLIGHTS | |||||
REVIEW OF OPERATIONS | |||||
The Caraíba Operations | |||||
The Xavantina Operations | |||||
2024 GUIDANCE | |||||
REVIEW OF FINANCIAL RESULTS | |||||
Review of quarterly results | |||||
Review of annual results | |||||
Summary of quarterly results for most recent eight quarters | |||||
OTHER DISCLOSURES | |||||
Liquidity, Capital Resources, and Contractual Obligations | |||||
Management of Risks and Uncertainties | |||||
Other Financial Information | |||||
Accounting Policies, Judgments and Estimates | |||||
Capital Expenditures | |||||
Alternative Performance (NON-IFRS) Measures | |||||
Disclosure Controls and Procedures and Internal Control over Financial Reporting | |||||
Notes and Cautionary Statements |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | ||||||||||||||||||||||||||||
Operating Information |
||||||||||||||||||||||||||||||||
Copper (Caraíba Operations) | ||||||||||||||||||||||||||||||||
Ore Processed (tonnes) | 812,202 | 806,096 | 745,850 | 3,231,667 | 2,864,230 | |||||||||||||||||||||||||||
Grade (% Cu) | 1.59 | 1.46 | 1.84 | 1.49 | 1.76 | |||||||||||||||||||||||||||
Cu Production (tonnes) | 11,760 | 10,766 | 12,664 | 43,857 | 46,371 | |||||||||||||||||||||||||||
Cu Production (lbs) | 25,926,281 | 23,734,026 | 27,918,071 | 96,687,638 | 102,229,718 | |||||||||||||||||||||||||||
Cu Sold in Concentrate (tonnes) | 11,429 | 10,090 | 13,301 | 42,595 | 46,816 | |||||||||||||||||||||||||||
Cu Sold in Concentrate (lbs) | 25,196,731 | 22,243,586 | 29,323,118 | 93,905,643 | 103,211,464 | |||||||||||||||||||||||||||
Cu C1 Cash Cost(1)(2) |
$ | 1.75 | $ | 1.92 | $ | 1.59 | $ | 1.80 | $ | 1.55 | ||||||||||||||||||||||
Gold (Xavantina Operations) | ||||||||||||||||||||||||||||||||
Ore Processed (tonnes) | 34,416 | 31,446 | 39,715 | 136,002 | 189,743 | |||||||||||||||||||||||||||
Grade (g / tonne) | 17.18 | 18.72 | 10.17 | 15.13 | 7.61 | |||||||||||||||||||||||||||
Au Production (oz) | 16,867 | 17,579 | 11,786 | 59,222 | 42,669 | |||||||||||||||||||||||||||
Au C1 Cash Cost(1) |
$ | 413 | $ | 371 | $ | 445 | $ | 422 | $ | 560 | ||||||||||||||||||||||
Au AISC(1) |
$ | 991 | $ | 844 | $ | 1,096 | $ | 957 | $ | 1,124 | ||||||||||||||||||||||
Financial information ($ in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Revenues | $ | 116.4 | $ | 105.2 | $ | 116.7 | $ | 427.5 | $ | 426.4 | ||||||||||||||||||||||
Gross profit | 41.9 | 35.5 | 52.7 | 156.8 | 187.2 | |||||||||||||||||||||||||||
EBITDA(1) |
73.7 | 28.3 | 53.6 | 208.7 | 208.3 | |||||||||||||||||||||||||||
Adjusted EBITDA(1) |
50.3 | 42.9 | 53.2 | 183.5 | 198.3 | |||||||||||||||||||||||||||
Cash flow from operations |
49.4 | 41.9 | 34.0 | 163.1 | 143.4 | |||||||||||||||||||||||||||
Net income |
37.1 | 2.8 | 22.5 | 94.3 | 103.1 | |||||||||||||||||||||||||||
Net income attributable to owners of the Company |
36.5 | 2.5 | 22.2 | 92.8 | 101.8 | |||||||||||||||||||||||||||
- Per share (basic) | 0.37 | 0.03 | 0.24 | 0.99 | 1.12 | |||||||||||||||||||||||||||
- Per share (diluted) | 0.37 | 0.03 | 0.24 | 0.98 | 1.10 | |||||||||||||||||||||||||||
Adjusted net income attributable to owners of the Company(1) |
20.7 | 17.3 | 22.2 | 82.8 | 83.5 | |||||||||||||||||||||||||||
- Per share (basic) | 0.21 | 0.19 | 0.24 | 0.88 | 0.92 | |||||||||||||||||||||||||||
- Per share (diluted) | 0.21 | 0.18 | 0.24 | 0.87 | 0.91 | |||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 111.7 | 87.6 | 317.4 | 111.7 | 317.4 | |||||||||||||||||||||||||||
Working capital(1) |
25.7 | 32.8 | 263.3 | 25.7 | 263.3 | |||||||||||||||||||||||||||
Available liquidity(1) |
261.7 | 237.6 | 392.4 | 261.7 | 392.4 | |||||||||||||||||||||||||||
Net debt(1) |
314.5 | 331.8 | 100.7 | 314.5 | 100.7 |
Copper |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Ore mined (tonnes) | 886,271 | 794,102 | 802,466 | 3,341,121 | 2,851,516 | |||||||||||||||||||||||||||
Ore processed (tonnes) | 812,202 | 806,096 | 745,850 | 3,231,667 | 2,864,230 | |||||||||||||||||||||||||||
Grade (% Cu) | 1.59 | 1.46 | 1.84 | 1.49 | 1.76 | |||||||||||||||||||||||||||
Recovery (%) | 91.0 | 91.6 | 92.3 | 91.4 | 91.9 | |||||||||||||||||||||||||||
Cu Production (tonnes) | 11,760 | 10,766 | 12,664 | 43,857 | 46,371 | |||||||||||||||||||||||||||
Cu Production (lbs) | 25,926,281 | 23,734,026 | 27,918,071 | 96,687,638 | 102,229,718 | |||||||||||||||||||||||||||
Concentrate grade (% Cu) | 33.3 | 33.9 | 33.9 | 33.7 | 33.4 | |||||||||||||||||||||||||||
Concentrate sales (tonnes) | 34,332 | 30,751 | 36,865 | 131,002 | 140,133 | |||||||||||||||||||||||||||
Cu Sold in concentrate (tonnes) | 11,429 | 10,090 | 13,301 | 42,595 | 46,816 | |||||||||||||||||||||||||||
Cu Sold in concentrate (lbs) | 25,196,731 | 22,243,586 | 29,323,118 | 93,905,643 | 103,211,464 | |||||||||||||||||||||||||||
Realized copper price | $ | 3.52 | $ | 3.65 | $ | 3.54 | $ | 3.64 | $ | 3.60 | ||||||||||||||||||||||
Copper C1 cash cost | $ | 1.75 | $ | 1.92 | $ | 1.59 | $ | 1.80 | $ | 1.55 | ||||||||||||||||||||||
Copper C1 cash cost including foreign exchange hedges | $ | 1.59 | $ | 1.77 | $ | 1.59 | $ | 1.68 | $ | 1.67 |
Gold |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Ore mined (tonnes) | 34,417 | 31,277 | 39,755 | 135,982 | 189,783 | |||||||||||||||||||||||||||
Ore processed (tonnes) | 34,416 | 31,446 | 39,715 | 136,002 | 189,743 | |||||||||||||||||||||||||||
Head grade (grams per tonne Au) | 17.18 | 18.72 | 10.17 | 15.13 | 7.61 | |||||||||||||||||||||||||||
Recovery (%) | 88.7 | 92.9 | 90.7 | 89.5 | 92.0 | |||||||||||||||||||||||||||
Gold ounces produced (oz) | 16,867 | 17,579 | 11,786 | 59,222 | 42,669 | |||||||||||||||||||||||||||
Silver ounces produced (oz) | 9,907 | 10,994 | 7,050 | 37,674 | 27,885 | |||||||||||||||||||||||||||
Gold sold (oz) | 18,479 | 15,457 | 10,583 | 57,949 | 41,951 | |||||||||||||||||||||||||||
Silver sold (oz) | 9,618 | 10,296 | 7,123 | 35,655 | 27,876 | |||||||||||||||||||||||||||
Realized gold price(1) |
$ | 1,820 | $ | 1,902 | $ | 1,750 | $ | 1,867 | $ | 1,807 | ||||||||||||||||||||||
Gold C1 cash cost | $ | 413 | $ | 371 | $ | 445 | $ | 422 | $ | 560 | ||||||||||||||||||||||
Gold AISC | $ | 991 | $ | 844 | $ | 1,096 | $ | 957 | $ | 1,124 |
Consolidated Copper Production (tonnes) |
||||||||
Caraíba Operations | 42,000 - 47,000 |
|||||||
Tucumã Operations | 17,000 - 25,000 |
|||||||
Total | 59,000 - 72,000 |
|||||||
Consolidated Copper C1 Cash Costs(1) Guidance |
||||||||
Caraíba Operations | $1.80 - $2.00 |
|||||||
Tucumã Operations | $0.90 - $1.10 |
|||||||
Total | $1.50 - $1.75 |
|||||||
The Xavantina Operations |
||||||||
Au Production (ounces) | 55,000 - 60,000 |
|||||||
Gold C1 Cash Cost(1) Guidance |
$550 - $650 |
|||||||
Gold AISC(1) Guidance |
$1,050 - $1,150 |
|||||||
Caraíba Operations |
||||||||
Growth | $80 - $90 |
|||||||
Sustaining | $100 - $110 |
|||||||
Total, Caraíba Operations |
$180 - $200 |
|||||||
Tucumã Project | ||||||||
Growth | $65 - $75 |
|||||||
Capitalized Ramp-Up Costs | $4 - $6 |
|||||||
Sustaining | $2 - $5 |
|||||||
Total, Tucumã Project | $71 - $86 |
|||||||
Xavantina Operations | ||||||||
Growth | $3 - $5 |
|||||||
Sustaining | $15 - $18 |
|||||||
Total, Xavantina Operations | $18 - $23 |
|||||||
Consolidated Exploration Programs | $30 - $40 |
|||||||
Company Total | ||||||||
Growth | $148 - $170 |
|||||||
Capitalized Ramp-Up Costs | $4 - $6 |
|||||||
Sustaining | $117 - $133 |
|||||||
Exploration | $30 - $40 |
|||||||
Total, Company | $299 - $349 |
Three months ended December 31, |
|||||||||||||||||
Notes | 2023 | 2022 | |||||||||||||||
Revenue | 1 | $ | 116,414 | $ | 116,667 | ||||||||||||
Cost of sales | 2 | (74,560) | (63,953) | ||||||||||||||
Gross profit | 41,854 | 52,714 | |||||||||||||||
Expenses | |||||||||||||||||
General and administrative | 3 | (12,160) | (14,049) | ||||||||||||||
Share-based compensation | (477) | (4,123) | |||||||||||||||
Income before the undernoted |
29,217 | 34,542 | |||||||||||||||
Finance income | 1,989 | 5,041 | |||||||||||||||
Finance expense | 4 | (5,284) | (12,290) | ||||||||||||||
Foreign exchange gain |
5 | 24,871 | 4,569 | ||||||||||||||
Other expenses |
(5,326) | (1,850) | |||||||||||||||
Income before income taxes |
45,467 | 30,012 | |||||||||||||||
Income tax expense |
|||||||||||||||||
Current | (6,833) | (7,146) | |||||||||||||||
Deferred | (1,582) | (394) | |||||||||||||||
6 | (8,415) | (7,540) | |||||||||||||||
Net income for the period |
$ | 37,052 | $ | 22,472 | |||||||||||||
Other comprehensive gain |
|||||||||||||||||
Foreign currency translation gain |
7 | 26,074 | 23,398 | ||||||||||||||
Comprehensive income |
$ | 63,126 | $ | 45,870 | |||||||||||||
Net income per share attributable to owners of the Company |
|||||||||||||||||
Basic | $ | 0.37 | $ | 0.24 | |||||||||||||
Diluted | $ | 0.37 | $ | 0.24 | |||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 98,099,791 | 91,522,358 | |||||||||||||||
Diluted | 98,482,755 | 92,551,916 | |||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
Notes | 2023 | 2022 | 2021 | ||||||||||||||||||||
Revenue | 1 | $ | 427,480 | $ | 426,392 | $ | 489,915 | ||||||||||||||||
Cost of sales | 2 | (270,635) | (239,217) | (171,057) | |||||||||||||||||||
Gross profit | 156,845 | 187,175 | 318,858 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
General and administrative | 3 | (52,429) | (49,459) | (38,846) | |||||||||||||||||||
Share-based compensation | (9,218) | (7,931) | (7,848) | ||||||||||||||||||||
Income before the undernoted |
95,198 | 129,785 | 272,164 | ||||||||||||||||||||
Finance income | 12,465 | 10,295 | 2,991 | ||||||||||||||||||||
Finance expense | 4 | (25,822) | (33,223) | (12,159) | |||||||||||||||||||
Foreign exchange gain |
5 | 34,612 | 19,910 | (21,968) | |||||||||||||||||||
NX Gold stream transaction fees | — | — | (1,219) | ||||||||||||||||||||
Other expenses |
(4,102) | (384) | (2,889) | ||||||||||||||||||||
Income before income taxes |
112,351 | 126,383 | 236,920 | ||||||||||||||||||||
Income tax expense |
|||||||||||||||||||||||
Current | (15,992) | (15,043) | (22,428) | ||||||||||||||||||||
Deferred | (2,055) | (8,273) | (11,860) | ||||||||||||||||||||
6 | (18,047) | (23,316) | (34,288) | ||||||||||||||||||||
Net income for the period |
$ | 94,304 | $ | 103,067 | $ | 202,632 | |||||||||||||||||
Other comprehensive gain |
|||||||||||||||||||||||
Foreign currency translation gain |
7 | 52,656 | 29,897 | (24,252) | |||||||||||||||||||
Comprehensive income |
$ | 146,960 | $ | 132,964 | $ | 178,380 | |||||||||||||||||
Net income per share attributable to owners of the Company |
|||||||||||||||||||||||
Basic | $ | 0.99 | $ | 1.12 | $ | 2.27 | |||||||||||||||||
Diluted | $ | 0.98 | $ | 1.10 | $ | 2.21 | |||||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||||||||
Basic | 94,111,548 | 90,789,925 | 88,602,367 | ||||||||||||||||||||
Diluted | 94,896,334 | 92,170,656 | 90,963,452 |
Selected Financial Information | Dec. 31,(1) |
Sep. 30,(2) |
Jun. 30,(3) |
Mar. 31,(4) |
Dec. 31,(5) |
Sep. 30,(6) |
Jun. 30,(7) |
Mar. 31,(8) |
||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 116.4 | $ | 105.2 | $ | 104.9 | $ | 101.0 | $ | 116.7 | $ | 85.9 | $ | 114.9 | $ | 108.9 | ||||||||||||||||||||||||||||||||||
Cost of sales |
$ | (74.6) | $ | (69.7) | $ | (65.5) | $ | (60.8) | $ | (64.0) | $ | (63.1) | $ | (64.3) | $ | (47.9) | ||||||||||||||||||||||||||||||||||
Gross profit |
$ | 41.9 | $ | 35.5 | $ | 39.4 | $ | 40.1 | $ | 52.7 | $ | 22.8 | $ | 50.7 | $ | 61.0 | ||||||||||||||||||||||||||||||||||
Net income for period |
$ | 37.1 | $ | 2.8 | $ | 29.9 | $ | 24.5 | $ | 22.5 | $ | 4.0 | $ | 24.1 | $ | 52.5 | ||||||||||||||||||||||||||||||||||
Income per share attributable to the owners of the Company |
||||||||||||||||||||||||||||||||||||||||||||||||||
- Basic | $ | 0.37 | $ | 0.03 | $ | 0.32 | $ | 0.26 | $ | 0.24 | $ | 0.04 | $ | 0.26 | $ | 0.58 | ||||||||||||||||||||||||||||||||||
- Diluted | $ | 0.37 | $ | 0.03 | $ | 0.32 | $ | 0.26 | $ | 0.24 | $ | 0.04 | $ | 0.26 | $ | 0.57 | ||||||||||||||||||||||||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Basic | 98,099,791 | 93,311,434 | 92,685,916 | 92,294,045 | 91,522,358 | 90,845,229 | 90,539,647 | 90,238,008 | ||||||||||||||||||||||||||||||||||||||||||
- Diluted | 98,482,755 | 94,009,268 | 93,643,447 | 93,218,281 | 92,551,916 | 91,797,437 | 91,850,321 | 92,050,104 |
December 31, 2023 | December 31, 2022 | ||||||||||
Cash and cash equivalents | $ | 111,738 | $ | 177,702 | |||||||
Short-term investments | — | 139,700 | |||||||||
Accounts receivable | 5,710 | 10,289 | |||||||||
Derivatives | 11,254 | 3,237 | |||||||||
Note receivable | 17,413 | 20,630 | |||||||||
Deposits and other assets | 8,472 | 3,985 | |||||||||
$ | 154,587 | $ | 355,543 |
Non-derivative financial liabilities | Carrying value |
Contractual cash flows | Up to 12 months |
1 - 2 years |
3 - 5 years |
More than 5 years |
||||||||||||||||||||||||||||||||
Loans and borrowings (including interest) | $ | 426,233 | $ | 593,991 | $ | 37,743 | $ | 34,468 | $ | 82,781 | $ | 438,999 | ||||||||||||||||||||||||||
Accounts payable and accrued liabilities | 120,704 | 120,704 | 120,704 | — | — | — | ||||||||||||||||||||||||||||||||
Other non-current liabilities | 8,524 | 23,436 | — | 10,166 | 12,640 | 630 | ||||||||||||||||||||||||||||||||
Leases | 19,603 | 19,579 | 10,929 | 5,521 | 3,019 | 110 | ||||||||||||||||||||||||||||||||
Total | $ | 575,064 | $ | 757,710 | $ | 169,376 | $ | 50,155 | $ | 98,440 | $ | 439,739 |
Purpose | Notional Amount | Denomination | Weighted average floor | Weighted average cap / forward price | Maturities | |||||||||||||||||||||||||||
Operational costs | $232.5 million | USD/BRL | 4.96 | 5.38 | Jan 2024 - Dec 2024 | |||||||||||||||||||||||||||
Capital expenditures | $144.5 million | USD/BRL | 5.10 | 5.23 | Jan 2024 - Dec 2024 | |||||||||||||||||||||||||||
Total | $377.0 million | USD/BRL | 5.01 | 5.33 | Jan 2024 - Dec 2024 |
2023 | 2022 | ||||||||||||||||
Caraíba Operations |
|||||||||||||||||
Growth | $ | 148,808 | $ | 63,477 | |||||||||||||
Sustaining | 78,473 | 88,356 | |||||||||||||||
Exploration | 30,408 | 34,786 | |||||||||||||||
Deposit on Projects | (8,523) | 22,524 | |||||||||||||||
Total, Caraíba Operations |
$ | 249,166 | $ | 209,143 | |||||||||||||
Tucumã Project |
|||||||||||||||||
Growth | 189,006 | 47,382 | |||||||||||||||
Exploration | 813 | 6,108 | |||||||||||||||
Deposit on Projects | 15,687 | 5,938 | |||||||||||||||
Total, Tucumã Project |
$ | 205,506 | $ | 59,428 | |||||||||||||
Xavantina Operations |
|||||||||||||||||
Growth | 2,944 | 3,248 | |||||||||||||||
Sustaining | 16,251 | 14,487 | |||||||||||||||
Exploration | 8,546 | 13,038 | |||||||||||||||
Deposit on Projects | (174) | — | |||||||||||||||
Total, Xavantina Operations |
$ | 27,567 | $ | 30,773 | |||||||||||||
Corporate and Other | |||||||||||||||||
Sustaining | 933 | — | |||||||||||||||
Exploration | 6,325 | 7,149 | |||||||||||||||
Deposit on Projects | 4 | 6 | |||||||||||||||
Total, Corporate and Other | $ | 7,262 | $ | 7,155 | |||||||||||||
Consolidated | |||||||||||||||||
Growth | $ | 340,758 | 114,107 | ||||||||||||||
Sustaining | 95,657 | 102,843 | |||||||||||||||
Exploration | 46,092 | 61,081 | |||||||||||||||
Deposit on Projects | 6,994 | 28,468 | |||||||||||||||
Total, Consolidated | $ | 489,501 | $ | 306,499 | |||||||||||||
Reconciliation: | 2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Cost of production |
$ | 39,790 | $ | 39,345 | $ | 40,067 | $ | 153,187 | $ | 146,292 | ||||||||||||||||||||||
Add (less): |
||||||||||||||||||||||||||||||||
Transportation costs & other | 1,853 | 1,614 | 2,362 | 6,539 | 9,019 | |||||||||||||||||||||||||||
Treatment, refining, and other | 7,332 | 6,574 | 9,989 | 28,323 | 36,156 | |||||||||||||||||||||||||||
By-product credits | (3,394) | (3,022) | (6,103) | (12,930) | (22,282) | |||||||||||||||||||||||||||
Incentive payments | (1,693) | (1,609) | (1,092) | (5,668) | (3,914) | |||||||||||||||||||||||||||
Net change in inventory |
1,434 | 2,835 | (861) | 4,407 | (6,040) | |||||||||||||||||||||||||||
Foreign exchange translation and other | 20 | (171) | (47) | (149) | 373 | |||||||||||||||||||||||||||
C1 cash costs | 45,342 | 45,566 | 44,315 | 173,709 | 159,604 | |||||||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | (4,185) | (3,458) | (78) | (11,417) | 12,498 | |||||||||||||||||||||||||||
C1 cash costs including foreign exchange hedges | $ | 41,157 | $ | 42,108 | $ | 44,237 | $ | 162,292 | $ | 172,102 |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | ||||||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||
Mining |
$ | 26,646 | $ | 27,258 | $ | 26,433 | $ | 102,908 | $ | 94,086 | ||||||||||||||||||||||
Processing | 8,177 | 8,362 | 8,033 | 30,736 | 30,155 | |||||||||||||||||||||||||||
Indirect | 6,581 | 6,394 | 5,963 | 24,672 | 21,489 | |||||||||||||||||||||||||||
Production costs | 41,404 | 42,014 | 40,429 | 158,316 | 145,730 | |||||||||||||||||||||||||||
By-product credits | (3,394) | (3,022) | (6,103) | (12,930) | (22,282) | |||||||||||||||||||||||||||
Treatment, refining and other | 7,332 | 6,574 | 9,989 | 28,323 | 36,156 | |||||||||||||||||||||||||||
C1 cash costs | 45,342 | 45,566 | 44,315 | 173,709 | 159,604 | |||||||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | (4,185) | $ | (3,458) | $ | (78) | (11,417) | 12,498 | |||||||||||||||||||||||||
C1 cash costs including foreign exchange hedges | $ | 41,157 | $ | 42,108 | $ | 44,237 | $ | 162,292 | $ | 172,102 |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | ||||||||||||||||||||||||||||
Costs per pound | ||||||||||||||||||||||||||||||||
Total copper produced (lb, 000) | 25,926 | 23,734 | 27,918 | 96,688 | 102,230 | |||||||||||||||||||||||||||
Mining | $ | 1.03 | $ | 1.15 | $ | 0.95 | $ | 1.06 | $ | 0.92 | ||||||||||||||||||||||
Processing | $ | 0.32 | $ | 0.35 | $ | 0.29 | $ | 0.32 | $ | 0.29 | ||||||||||||||||||||||
Indirect | $ | 0.25 | $ | 0.27 | $ | 0.21 | $ | 0.26 | $ | 0.21 | ||||||||||||||||||||||
By-product credits | $ | (0.13) | $ | (0.13) | $ | (0.22) | $ | (0.13) | $ | (0.22) | ||||||||||||||||||||||
Treatment, refining and other | $ | 0.28 | $ | 0.28 | $ | 0.36 | $ | 0.29 | $ | 0.35 | ||||||||||||||||||||||
Copper C1 cash costs | $ | 1.75 | $ | 1.92 | $ | 1.59 | $ | 1.80 | $ | 1.55 | ||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | $ | (0.16) | $ | (0.15) | $ | — | $ | (0.12) | $ | 0.12 | ||||||||||||||||||||||
Copper C1 cash costs including foreign exchange hedges | $ | 1.59 | $ | 1.77 | $ | 1.59 | $ | 1.68 | $ | 1.67 |
Reconciliation: | 2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Copper revenue ($000s)(1) |
$ | 83,237 | $ | 76,136 | $ | 98,315 | $ | 320,603 | $ | 351,404 | ||||||||||||||||||||||
less: by-product credits | (3,394) | (3,022) | (6,103) | (12,930) | (22,282) | |||||||||||||||||||||||||||
Net copper revenue | 79,843 | 73,114 | 92,212 | 307,673 | 329,122 | |||||||||||||||||||||||||||
add: treatment, refining and other | 7,332 | 6,574 | 9,989 | 28,323 | 36,156 | |||||||||||||||||||||||||||
add: royalty taxes | 1,501 | 1,418 | 1,566 | 6,049 | 6,572 | |||||||||||||||||||||||||||
Gross copper revenue | 88,676 | 81,106 | 103,767 | 342,045 | 371,850 | |||||||||||||||||||||||||||
Cu Sold in concentrate (lbs) | 25,197 | 22,244 | 29,323 | 93,906 | 103,211 | |||||||||||||||||||||||||||
Realized copper price | $ | 3.52 | $ | 3.65 | $ | 3.54 | $ | 3.64 | $ | 3.60 |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Cost of production |
$ | 7,122 | $ | 6,323 | $ | 4,834 | $ | 25,209 | $ | 24,768 | ||||||||||||||||||||||
Add (less): |
||||||||||||||||||||||||||||||||
Incentive payments | (386) | (320) | (167) | (1,424) | (1,117) | |||||||||||||||||||||||||||
Net change in inventory | 65 | 213 | 258 | 862 | (119) | |||||||||||||||||||||||||||
By-product credits | (248) | (240) | (199) | (827) | (613) | |||||||||||||||||||||||||||
Smelting and refining |
113 | 101 | 61 | 353 | 234 | |||||||||||||||||||||||||||
Foreign exchange translation and other |
296 | 453 | 462 | 806 | 742 | |||||||||||||||||||||||||||
C1 cash costs | $ | 6,962 | $ | 6,530 | $ | 5,249 | $ | 24,979 | $ | 23,895 | ||||||||||||||||||||||
Site general and administrative | 1,492 | 1,304 | 1,196 | 5,366 | 3,648 | |||||||||||||||||||||||||||
Accretion of mine closure and rehabilitation provision | 111 | 112 | 106 | 439 | 436 | |||||||||||||||||||||||||||
Sustaining capital expenditure | 5,499 | 4,258 | 4,547 | 16,300 | 14,638 | |||||||||||||||||||||||||||
Sustaining lease payments | 1,861 | 1,832 | 1,559 | 7,093 | 4,311 | |||||||||||||||||||||||||||
Royalties and production taxes | 785 | 808 | 262 | 2,487 | 1,041 | |||||||||||||||||||||||||||
AISC | $ | 16,710 | $ | 14,844 | $ | 12,919 | $ | 56,664 | $ | 47,969 | ||||||||||||||||||||||
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | ||||||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||
Mining |
$ | 3,430 | $ | 3,140 | $ | 2,311 | $ | 12,154 | $ | 12,529 | ||||||||||||||||||||||
Processing | 2,315 | 2,165 | 2,067 | 8,433 | 7,917 | |||||||||||||||||||||||||||
Indirect | 1,352 | 1,364 | 1,009 | 4,866 | 3,828 | |||||||||||||||||||||||||||
Production costs | 7,097 | 6,669 | 5,387 | 25,453 | 24,274 | |||||||||||||||||||||||||||
Smelting and refining costs |
113 | 101 | 61 | 353 | 234 | |||||||||||||||||||||||||||
By-product credits | (248) | (240) | (199) | (827) | (613) | |||||||||||||||||||||||||||
C1 cash costs | $ | 6,962 | $ | 6,530 | $ | 5,249 | $ | 24,979 | $ | 23,895 | ||||||||||||||||||||||
Site general and administrative | 1,492 | 1,304 | 1,196 | 5,366 | 3,648 | |||||||||||||||||||||||||||
Accretion of mine closure and rehabilitation provision | 111 | 112 | 106 | 439 | 436 | |||||||||||||||||||||||||||
Sustaining capital expenditure | 5,499 | 4,258 | 4,547 | 16,300 | 14,638 | |||||||||||||||||||||||||||
Sustaining leases | 1,861 | 1,832 | 1,559 | 7,093 | 4,311 | |||||||||||||||||||||||||||
Royalties and production taxes | 785 | 808 | 262 | 2,487 | 1,041 | |||||||||||||||||||||||||||
AISC | $ | 16,710 | $ | 14,844 | $ | 12,919 | $ | 56,664 | $ | 47,969 | ||||||||||||||||||||||
Costs per ounce | ||||||||||||||||||||||||||||||||
Total gold produced (ounces) | 16,867 | 17,579 | 11,786 | 59,222 | 42,669 | |||||||||||||||||||||||||||
Mining | $ | 203 | $ | 179 | $ | 196 | $ | 205 | $ | 294 | ||||||||||||||||||||||
Processing | $ | 137 | $ | 123 | $ | 175 | $ | 142 | $ | 186 | ||||||||||||||||||||||
Indirect | $ | 80 | $ | 78 | $ | 86 | $ | 82 | $ | 90 | ||||||||||||||||||||||
Smelting and refining | $ | 7 | $ | 6 | $ | 5 | $ | 6 | $ | 5 | ||||||||||||||||||||||
By-product credits | $ | (14) | $ | (15) | $ | (17) | $ | (13) | $ | (15) | ||||||||||||||||||||||
Gold C1 cash cost | $ | 413 | $ | 371 | $ | 445 | $ | 422 | $ | 560 | ||||||||||||||||||||||
Gold AISC | $ | 991 | $ | 844 | $ | 1,096 | $ | 957 | $ | 1,124 |
(in '000s except for ounces and price per ounce) | 2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
NX Gold revenue |
$ | 33,176 | $ | 29,046 | $ | 18,352 | $ | 106,877 | $ | 74,988 | ||||||||||||||||||||||
less: by-product credits | (248) | (240) | (199) | (827) | (613) | |||||||||||||||||||||||||||
Gold revenue, net | $ | 32,928 | $ | 28,806 | $ | 18,153 | $ | 106,050 | $ | 74,375 | ||||||||||||||||||||||
add: smelting, refining, and other charges | 713 | 588 | 365 | 2,165 | 1,443 | |||||||||||||||||||||||||||
Gold revenue, gross | $ | 33,641 | $ | 29,394 | $ | 18,518 | $ | 108,215 | $ | 75,818 | ||||||||||||||||||||||
- spot (cash) | $ | 28,205 | $ | 23,003 | $ | 14,391 | $ | 85,724 | $ | 57,416 | ||||||||||||||||||||||
- stream (cash) | $ | 1,613 | $ | 1,383 | $ | 785 | $ | 5,409 | $ | 3,621 | ||||||||||||||||||||||
- stream (amortization of deferred revenue) | $ | 3,823 | $ | 5,008 | $ | 3,342 | $ | 17,082 | $ | 14,781 | ||||||||||||||||||||||
Total gold ounces sold | 18,479 | 15,457 | 10,583 | 57,949 | 41,951 | |||||||||||||||||||||||||||
- spot | 14,332 | 11,867 | 8,321 | 43,944 | 31,869 | |||||||||||||||||||||||||||
- stream | 4,147 | 3,590 | 2,262 | 14,005 | 10,082 | |||||||||||||||||||||||||||
Realized gold price (per ounce) | $ | 1,820 | $ | 1,902 | $ | 1,750 | $ | 1,867 | $ | 1,807 | ||||||||||||||||||||||
- spot | $ | 1,968 | $ | 1,938 | $ | 1,729 | $ | 1,951 | $ | 1,802 | ||||||||||||||||||||||
- stream (cash + amortization of deferred revenue) | $ | 1,311 | $ | 1,780 | $ | 1,824 | $ | 1,606 | $ | 1,825 | ||||||||||||||||||||||
- cash (spot cash + stream cash) | $ | 1,614 | $ | 1,578 | $ | 1,434 | $ | 1,573 | $ | 1,455 |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Net Income |
$ | 37,052 | $ | 2,811 | $ | 22,472 | $ | 94,304 | $ | 103,067 | ||||||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Finance expense |
5,284 | 8,017 | 12,290 | 25,822 | 33,223 | |||||||||||||||||||||||||||
Finance income |
(1,989) | (2,976) | (5,041) | (12,465) | (10,295) | |||||||||||||||||||||||||||
Income tax expense (recovery) |
8,415 | (807) | 7,540 | 18,047 | 23,316 | |||||||||||||||||||||||||||
Amortization and depreciation |
24,980 | 21,299 | 16,361 | 83,024 | 58,969 | |||||||||||||||||||||||||||
EBITDA(1) |
$ | 73,742 | $ | 28,344 | $ | 53,622 | $ | 208,732 | $ | 208,280 | ||||||||||||||||||||||
Foreign exchange (gain) loss |
(24,871) | 13,937 | (4,569) | (34,612) | (19,910) | |||||||||||||||||||||||||||
Share based compensation | 477 | (1,185) | 4,123 | 9,218 | 7,931 | |||||||||||||||||||||||||||
Unrealized loss on copper derivatives |
955 | 1,814 | — | 115 | — | |||||||||||||||||||||||||||
Incremental COVID-19 costs | — | — | — | — | 1,956 | |||||||||||||||||||||||||||
Adjusted EBITDA(1) |
$ | 50,303 | $ | 42,910 | $ | 53,176 | $ | 183,453 | $ | 198,257 |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Net income as reported attributable to the owners of the Company |
$ | 36,549 | $ | 2,525 | $ | 22,159 | $ | 92,804 | $ | 101,831 | ||||||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Share based compensation | 477 | (1,185) | 4,123 | 9,218 | 7,931 | |||||||||||||||||||||||||||
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA |
(10,308) | 9,481 | (1,782) | (15,296) | 25 | |||||||||||||||||||||||||||
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts |
(9,852) | 7,530 | (3,017) | (7,552) | (32,960) | |||||||||||||||||||||||||||
Unrealized loss on copper derivative contracts |
951 | 1,808 | — | 115 | — | |||||||||||||||||||||||||||
Incremental COVID-19 costs | — | — | — | — | 1,944 | |||||||||||||||||||||||||||
Tax effect on the above adjustments | 2,932 | (2,873) | 731 | 3,472 | 4,726 | |||||||||||||||||||||||||||
Adjusted net income attributable to owners of the Company | $ | 20,749 | $ | 17,286 | $ | 22,214 | $ | 82,761 | $ | 83,497 | ||||||||||||||||||||||
Weighted average number of common shares | ||||||||||||||||||||||||||||||||
Basic | 98,099,791 | 93,311,434 | 91,522,358 | 94,111,548 | 90,789,925 | |||||||||||||||||||||||||||
Diluted | 98,482,755 | 94,009,268 | 92,551,916 | 94,896,334 | 92,170,656 | |||||||||||||||||||||||||||
Adjusted EPS | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.19 | $ | 0.24 | $ | 0.88 | $ | 0.92 | ||||||||||||||||||||||
Diluted | $ | 0.21 | $ | 0.18 | $ | 0.24 | $ | 0.87 | $ | 0.91 |
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Current portion of loans and borrowings | $ | 20,381 | $ | 11,764 | $ | 15,703 | |||||||||||
Long-term portion of loans and borrowings | 405,852 | 407,656 | 402,354 | ||||||||||||||
Less: | |||||||||||||||||
Cash and cash equivalents | (111,738) | (44,757) | (177,702) | ||||||||||||||
Short-term investments | — | (42,843) | (139,700) | ||||||||||||||
Net debt (cash) | $ | 314,495 | $ | 331,820 | $ | 100,655 |
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Current assets | $ | 199,487 | $ | 174,113 | $ | 392,427 | |||||||||||
Less: Current liabilities | (173,800) | (141,284) | (129,121) | ||||||||||||||
Working capital |
$ | 25,687 | $ | 32,829 | $ | 263,306 | |||||||||||
Cash and cash equivalents | 111,738 | 44,757 | 177,702 | ||||||||||||||
Short-term investments | — | 42,843 | 139,700 | ||||||||||||||
Available undrawn revolving credit facilities(1) |
150,000 | 150,000 | 75,000 | ||||||||||||||
Available liquidity | $ | 261,738 | $ | 237,600 | $ | 392,402 |
Ero Copper Corp. | ||||||||
Page 2 |
Ero Copper Corp. | ||||||||
Page 2 |
Ero Copper Corp. | ||
Table of Contents | ||
CONSOLIDATED FINANCIAL STATEMENTS | |||||
Consolidated Statements of Financial Position |
|||||
Consolidated Statements of Operations and Comprehensive Income |
|||||
Consolidated Statements of Cash Flow |
|||||
Consolidated Statements of Changes in Shareholders' Equity |
|||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||
General | |||||
Note 1. Nature of Operations | |||||
Note 2. Basis of Preparation | |||||
Note 3. Material Accounting Policies | |||||
Note 4. Segment Disclosure | |||||
Statements of Financial Position | |||||
Note 5. Inventories | |||||
Note 6. Other Current Assets | |||||
Note 7. Mineral Properties, Plant and Equipment | |||||
Note 8. Exploration and Evaluation Assets | |||||
Note 9. Deposits and Other Non-current Assets | |||||
Note 10. Accounts Payable and Accrued Liabilities | |||||
Note 11. Loans and Borrowings | |||||
Note 12. Deferred Revenue | |||||
Note 13. Provision for rehabilitation and closure costs | |||||
Note 14. Other Non-current Liabilities | |||||
Note 15. Share Capital | |||||
Statements of Earnings | |||||
Note 16. Revenue | |||||
Note 17. Cost of Sales | |||||
Note 18. General and Administrative Expenses | |||||
Note 19. Finance Expense | |||||
Note 20. Foreign Exchange Gain | |||||
Note 21. Income Taxes | |||||
Other Items | |||||
Note 22. Related Party Transactions | |||||
Note 23. Financial Instruments | |||||
Note 24. Capital Management | |||||
Note 25. Supplemental Cash Flow Information | |||||
Note 26. Commitment and Contingencies | |||||
Ero Copper Corp. | ||
Consolidated Statements of Financial Position | ||
(Amounts in thousands of US Dollars) |
Notes | December 31, 2023 |
December 31, 2022 |
|||||||||||||||
ASSETS | |||||||||||||||||
Current | |||||||||||||||||
Cash and cash equivalents | $ | 111,738 | $ | 177,702 | |||||||||||||
Short-term investments | — | 139,700 | |||||||||||||||
Accounts receivable | 5,710 | 10,289 | |||||||||||||||
Inventories | 5 | 42,254 | 30,955 | ||||||||||||||
Income tax receivable | 500 | — | |||||||||||||||
Other current assets | 6 | 39,285 | 33,781 | ||||||||||||||
199,487 | 392,427 | ||||||||||||||||
Non-Current | |||||||||||||||||
Mineral properties, plant and equipment | 7 | 1,251,998 | 755,274 | ||||||||||||||
Exploration and evaluation assets | 8 | 29,936 | 15,686 | ||||||||||||||
Deferred income tax assets | 21 | 1,315 | — | ||||||||||||||
Deposits and other non-current assets | 9 | 28,952 | 24,689 | ||||||||||||||
1,312,201 | 795,649 | ||||||||||||||||
Total Assets | $ | 1,511,688 | $ | 1,188,076 | |||||||||||||
LIABILITIES | |||||||||||||||||
Current | |||||||||||||||||
Accounts payable and accrued liabilities | 10 | $ | 120,704 | $ | 84,603 | ||||||||||||
Current portion of loans and borrowings | 11 | 20,381 | 15,703 | ||||||||||||||
Current portion of deferred revenue | 12 | 17,159 | 16,580 | ||||||||||||||
Income taxes payable | 3,997 | 5,435 | |||||||||||||||
Current portion of derivatives | 23 | 563 | 577 | ||||||||||||||
Current portion of lease liabilities | 10,996 | 6,223 | |||||||||||||||
173,800 | 129,121 | ||||||||||||||||
Non-Current | |||||||||||||||||
Loans and borrowings | 11 | 405,852 | 402,354 | ||||||||||||||
Deferred revenue | 12 | 58,390 | 69,476 | ||||||||||||||
Provision for rehabilitation and closure costs | 13 | 26,687 | 22,172 | ||||||||||||||
Deferred income tax liabilities | 21 | 10,863 | 6,229 | ||||||||||||||
Lease liabilities | 8,607 | 4,740 | |||||||||||||||
Other non-current liabilities | 14 | 18,158 | 11,819 | ||||||||||||||
528,557 | 516,790 | ||||||||||||||||
Total Liabilities | 702,357 | 645,911 | |||||||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||||
Share capital | 15 | 271,336 | 148,055 | ||||||||||||||
Equity reserves | (16,616) | (66,189) | |||||||||||||||
Retained earnings | 549,530 | 456,726 | |||||||||||||||
Equity attributable to owners of the Company | 804,250 | 538,592 | |||||||||||||||
Non-controlling interests | 5,081 | 3,573 | |||||||||||||||
809,331 | 542,165 | ||||||||||||||||
Total Liabilities and Equity | $ | 1,511,688 | $ | 1,188,076 |
Commitments (Notes 8, 12 and 26) ; Contingencies (Note 26); Subsequent Events (Notes 11) | ||||||||||||||||||||
APPROVED ON BEHALF OF THE BOARD: | ||||||||||||||||||||
"David Strang" | , CEO and Director | "Jill Angevine" | , Director |
Ero Copper Corp. | ||
Consolidated Statements of Operations and Comprehensive Income | ||
(Amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | |||||||||||||||||
Notes | 2023 | 2022 | |||||||||||||||
Revenue | 16 | $ | 427,480 | $ | 426,392 | ||||||||||||
Cost of sales | 17 | (270,635) | (239,217) | ||||||||||||||
Gross profit |
156,845 | 187,175 | |||||||||||||||
Expenses | |||||||||||||||||
General and administrative | 18 | (52,429) | (49,459) | ||||||||||||||
Share-based compensation | 15 (e) |
(9,218) | (7,931) | ||||||||||||||
Income before the undernoted |
95,198 | 129,785 | |||||||||||||||
Finance income | 12,465 | 10,295 | |||||||||||||||
Finance expense | 19 | (25,822) | (33,223) | ||||||||||||||
Foreign exchange gain |
20 | 34,612 | 19,910 | ||||||||||||||
Other expenses |
(4,102) | (384) | |||||||||||||||
Income before income taxes |
112,351 | 126,383 | |||||||||||||||
Current income tax expense | (15,992) | (15,043) | |||||||||||||||
Deferred income tax expense | (2,055) | (8,273) | |||||||||||||||
Income tax expense |
21 | (18,047) | (23,316) | ||||||||||||||
Net income for the year |
$ | 94,304 | $ | 103,067 | |||||||||||||
Other comprehensive gain |
|||||||||||||||||
Foreign currency translation gain |
52,656 | 29,897 | |||||||||||||||
Comprehensive income |
$ | 146,960 | $ | 132,964 | |||||||||||||
Net income attributable to: |
|||||||||||||||||
Owners of the Company | 92,804 | 101,831 | |||||||||||||||
Non-controlling interests | 1,500 | 1,236 | |||||||||||||||
$ | 94,304 | $ | 103,067 | ||||||||||||||
Comprehensive income attributable to: |
|||||||||||||||||
Owners of the Company | 145,065 | 131,540 | |||||||||||||||
Non-controlling interests | 1,895 | 1,424 | |||||||||||||||
$ | 146,960 | $ | 132,964 | ||||||||||||||
Net income per share attributable to owners of the Company |
|||||||||||||||||
Basic | 15 (f) |
$ | 0.99 | $ | 1.12 | ||||||||||||
Diluted | 15 (f) |
$ | 0.98 | $ | 1.10 | ||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 15 (f) |
94,111,548 | 90,789,925 | ||||||||||||||
Diluted | 15 (f) |
94,896,334 | 92,170,656 |
Ero Copper Corp. | ||
Consolidated Statements of Cash Flow | ||
(Amounts in thousands of US Dollars) |
Year ended December 31, | |||||||||||||||||
Notes | 2023 | 2022 | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net income for the year |
$ | 94,304 | $ | 103,067 | |||||||||||||
Adjustments for: | |||||||||||||||||
Amortization and depreciation | 83,024 | 58,969 | |||||||||||||||
Income tax expense |
18,047 | 23,316 | |||||||||||||||
Amortization of deferred revenue | 16 |
(17,082) | (14,781) | ||||||||||||||
Share-based compensation | 9,218 | 7,931 | |||||||||||||||
Finance income | (12,465) | (10,295) | |||||||||||||||
Finance expenses | 25,822 | 33,223 | |||||||||||||||
Foreign exchange gain |
(36,798) | (23,095) | |||||||||||||||
Other | 4,236 | (490) | |||||||||||||||
Changes in non-cash working capital items | 25 | (8,372) | (18,029) | ||||||||||||||
159,934 | 159,816 | ||||||||||||||||
Advance from NX Gold PMPA | 12 |
2,440 | 3,207 | ||||||||||||||
Derivative contract settlements | 9,632 | (11,983) | |||||||||||||||
Provision settlements | (3,344) | (2,238) | |||||||||||||||
Income taxes paid | (5,563) | (5,416) | |||||||||||||||
163,099 | 143,386 | ||||||||||||||||
Cash Flows used in Investing Activities | |||||||||||||||||
Additions to mineral properties, plant and equipment | (447,174) | (282,775) | |||||||||||||||
Additions to exploration and evaluation assets | (13,475) | (13,044) | |||||||||||||||
Proceeds from short-term investments and interest received | 192,483 | 9,713 | |||||||||||||||
Purchase of short-term investments | (40,000) | (139,700) | |||||||||||||||
(308,166) | (425,806) | ||||||||||||||||
Cash Flows used in Financing Activities | |||||||||||||||||
Proceeds from equity offering, net of share issue costs | 15 | 104,330 | — | ||||||||||||||
Lease liability payments | (11,877) | (7,426) | |||||||||||||||
New loans and borrowings, net of transaction costs | 11 | 14,889 | 401,495 | ||||||||||||||
Loans and borrowings repaid | 11 | (7,786) | (55,650) | ||||||||||||||
Interest paid on loans and borrowings | 11 | (27,461) | (15,383) | ||||||||||||||
Other finance expenses paid | (5,502) | (4,542) | |||||||||||||||
Proceeds from exercise of stock options | 11,158 | 8,805 | |||||||||||||||
77,751 | 327,299 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,352 | 2,694 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents |
(65,964) | 47,573 | |||||||||||||||
Cash and cash equivalents - beginning of year |
177,702 | 130,129 | |||||||||||||||
Cash and cash equivalents - end of year |
$ | 111,738 | $ | 177,702 |
Ero Copper Corp. | ||
Consolidated Statements of Changes in Shareholders' Equity | ||
(Amounts in thousands of US Dollars, except share and per share amounts) |
Share Capital | Equity Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | Number of shares |
Amount | Contributed Surplus |
Foreign Exchange |
Retained Earnings |
Total | Non-controlling interest |
Total equity | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 |
90,204,378 | $ | 133,072 | $ | 12,173 | $ | (107,083) | $ | 354,895 | $ | 393,057 | $ | 2,433 | $ | 395,490 | ||||||||||||||||||||||||||||||||||||||
Income for the year |
— | — | — | — | 101,831 | 101,831 | 1,236 | 103,067 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income for the year |
— | — | — | 29,709 | — | 29,709 | 188 | 29,897 | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the year |
— | — | — | 29,709 | 101,831 | 131,540 | 1,424 | 132,964 | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued for: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of options | 1,812,558 | 12,618 | (3,813) | — | — | 8,805 | — | 8,805 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted share units | 37,099 | 529 | (861) | — | — | (332) | — | (332) | |||||||||||||||||||||||||||||||||||||||||||||
Settlement of performance share units | 128,598 | 1,836 | — | — | — | 1,836 | — | 1,836 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 15 (e) |
— | — | 3,686 | — | — | 3,686 | — | 3,686 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to non-controlling interest | — | — | — | — | — | — | (284) | (284) | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 |
92,182,633 | $ | 148,055 | $ | 11,185 | $ | (77,374) | $ | 456,726 | $ | 538,592 | $ | 3,573 | $ | 542,165 | ||||||||||||||||||||||||||||||||||||||
Income for the year |
— | — | — | — | 92,804 | 92,804 | 1,500 | 94,304 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income for the year |
— | — | — | 52,261 | — | 52,261 | 395 | 52,656 | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the year |
— | — | — | 52,261 | 92,804 | 145,065 | 1,895 | 146,960 | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued for: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity financing, net | 15 |
9,010,000 | 104,330 | — | — | — | 104,330 | — | 104,330 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of options | 1,333,199 | 15,882 | (4,724) | — | — | 11,158 | — | 11,158 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted share units | 61,651 | 868 | (1,344) | — | — | (476) | — | (476) | |||||||||||||||||||||||||||||||||||||||||||||
Settlement of performance share units | 160,075 | 2,201 | — | — | — | 2,201 | — | 2,201 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 15 (e) |
— | — | 3,380 | — | — | 3,380 | — | 3,380 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to non-controlling interest | — | — | — | — | — | — | (387) | (387) | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 |
102,747,558 | $ | 271,336 | $ | 8,497 | $ | (25,113) | $ | 549,530 | $ | 804,250 | $ | 5,081 | $ | 809,331 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Buildings | Lessor of life of mine or up to 25 years |
||||
Mining equipment | 4 years |
||||
Mobile equipment & other assets | 5 years |
||||
Mineral properties | Units of production | ||||
Mine closure and rehabilitation costs | Units of production or period until remediation | ||||
Right of use assets | Shorter of the term of lease and life of asset |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Measurement Category | |||||
Financial Assets | |||||
Cash and cash equivalents | Amortized Cost | ||||
Short-term investments | Amortized Cost | ||||
Trade receivables related to provisional priced sales | Fair value through profit or loss | ||||
Derivatives | Fair value through profit or loss | ||||
Notes and other receivables | Amortized Cost | ||||
Deposits | Amortized Cost | ||||
Financial Liabilities | |||||
Trade payables | Amortized Cost | ||||
Loans and borrowings | Amortized Cost | ||||
Derivatives | Fair value through profit or loss |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, 2023 |
Caraíba (Brazil) |
Xavantina (Brazil) |
Tucumã
(Brazil)
|
Corporate and Other | Consolidated | |||||||||||||||||||||||||||
Revenue | $ | 320,603 | $ | 106,877 | $ | — | $ | — | $ | 427,480 | ||||||||||||||||||||||
Cost of production | (153,187) | (25,209) | — | — | (178,396) | |||||||||||||||||||||||||||
Depreciation and depletion | (62,032) | (19,489) | — | — | (81,521) | |||||||||||||||||||||||||||
Sales expense | (8,953) | (1,765) | — | — | (10,718) | |||||||||||||||||||||||||||
Cost of sales | (224,172) | (46,463) | — | — | (270,635) | |||||||||||||||||||||||||||
Gross profit | 96,431 | 60,414 | — | — | 156,845 | |||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
General and administrative | (31,128) | (6,550) | — | (14,751) | (52,429) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | (9,218) | (9,218) | |||||||||||||||||||||||||||
Finance income | 5,543 | 630 | — | 6,292 | 12,465 | |||||||||||||||||||||||||||
Finance expenses | (10,143) | (4,431) | — | (11,248) | (25,822) | |||||||||||||||||||||||||||
Foreign exchange gain (loss) |
34,737 | — | — | (125) | 34,612 | |||||||||||||||||||||||||||
Other (expenses) income |
(4,147) | 111 | — | (66) | (4,102) | |||||||||||||||||||||||||||
Income (loss) before taxes |
91,293 | 50,174 | — | (29,116) | 112,351 | |||||||||||||||||||||||||||
Current tax expense |
(1,796) | (7,446) | — | (6,750) | (15,992) | |||||||||||||||||||||||||||
Deferred tax (expense) recovery |
(2,618) | 563 | — | — | (2,055) | |||||||||||||||||||||||||||
Net income (loss) |
$ | 86,879 | $ | 43,291 | $ | — | $ | (35,866) | $ | 94,304 | ||||||||||||||||||||||
Capital expenditures(1) |
249,166 | 27,567 | 205,506 | 7,262 | 489,501 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current | $ | 79,463 | $ | 23,736 | $ | 2,016 | $ | 94,272 | 199,487 | |||||||||||||||||||||||
Non-current | 883,712 | 96,140 | 315,144 | 17,205 | 1,312,201 | |||||||||||||||||||||||||||
Total Assets | $ | 963,175 | $ | 119,876 | $ | 317,160 | $ | 111,477 | $ | 1,511,688 | ||||||||||||||||||||||
Total Liabilities | $ | 138,497 | $ | 101,095 | $ | 30,943 | $ | 431,822 | 702,357 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, 2022 |
Caraíba (Brazil) |
Xavantina (Brazil) |
Tucumã (Brazil) | Corporate and Other | Consolidated | |||||||||||||||||||||||||||
Revenue | $ | 351,405 | $ | 74,987 | $ | — | $ | — | $ | 426,392 | ||||||||||||||||||||||
Cost of production | (146,292) | (24,768) | — | — | (171,060) | |||||||||||||||||||||||||||
Depreciation and depletion | (47,051) | (11,605) | — | — | (58,656) | |||||||||||||||||||||||||||
Sales expenses | (8,941) | (560) | — | — | (9,501) | |||||||||||||||||||||||||||
Cost of sales | (202,284) | (36,933) | — | — | (239,217) | |||||||||||||||||||||||||||
Gross profit | 149,121 | 38,054 | — | — | 187,175 | |||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
General and administrative | (28,123) | (4,062) | — | (17,274) | (49,459) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | (7,931) | (7,931) | |||||||||||||||||||||||||||
Finance income | 4,310 | 1,451 | — | 4,534 | 10,295 | |||||||||||||||||||||||||||
Finance expenses | (9,044) | (4,244) | — | (19,935) | (33,223) | |||||||||||||||||||||||||||
Foreign exchange gain (loss) |
19,812 | 232 | — | (134) | 19,910 | |||||||||||||||||||||||||||
Other expenses |
(75) | (292) | — | (17) | (384) | |||||||||||||||||||||||||||
Income (loss) before taxes |
136,001 | 31,139 | — | (40,757) | 126,383 | |||||||||||||||||||||||||||
Current tax expense |
(8,463) | (2,413) | — | (4,167) | (15,043) | |||||||||||||||||||||||||||
Deferred tax (expense) recovery |
(8,378) | 105 | — | — | (8,273) | |||||||||||||||||||||||||||
Net income (loss) |
$ | 119,160 | $ | 28,831 | $ | — | $ | (44,924) | $ | 103,067 | ||||||||||||||||||||||
Capital expenditures | 209,143 | 30,773 | 59,428 | 7,155 | 306,499 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current | $ | 114,374 | $ | 50,447 | $ | 144 | $ | 227,462 | 392,427 | |||||||||||||||||||||||
Non-current | 621,005 | 74,874 | 90,971 | 8,799 | 795,649 | |||||||||||||||||||||||||||
Total Assets | $ | 735,379 | $ | 125,321 | $ | 91,115 | $ | 236,261 | $ | 1,188,076 | ||||||||||||||||||||||
Total Liabilities | $ | 98,904 | $ | 106,266 | $ | 9,595 | $ | 431,146 | 645,911 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
December 31, 2023 | December 31, 2022 | ||||||||||
Supplies and consumables | $ | 24,270 | $ | 23,043 | |||||||
Stockpiles | 5,624 | 2,125 | |||||||||
Work in progress | 917 | 1,234 | |||||||||
Finished goods | 11,443 | 4,553 | |||||||||
$ | 42,254 | $ | 30,955 |
December 31, 2023 | December 31, 2022 | ||||||||||
Advances to suppliers | $ | 306 | $ | 715 | |||||||
Prepaid expenses and other | 4,716 | 6,673 | |||||||||
Derivatives (Note 23) |
11,254 | 3,237 | |||||||||
Note receivable (Note 23) |
8,346 | 10,243 | |||||||||
Advances to employees | 944 | 667 | |||||||||
Value added taxes recoverable | 13,719 | 12,246 | |||||||||
$ | 39,285 | $ | 33,781 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Buildings | Mining Equipment |
Mineral
Properties(1)
|
Projects in Progress |
Equipment & Other Assets | Deposit on Projects | Mine Closure Costs | Right-of-Use Assets | Total | |||||||||||||||||||||||||||||||||||||||||||||
Cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 |
$ | 18,352 | $ | 124,775 | $ | 394,017 | $ | 19,190 | $ | 9,819 | $ | 10,488 | $ | 12,010 | $ | 17,298 | $ | 605,949 | |||||||||||||||||||||||||||||||||||
Additions | 885 | 62,081 | 125,004 | 64,779 | 8,722 | 31,984 | — | 11,666 | 305,121 | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized borrowing costs | — | — | — | 6,246 | — | — | — | — | 6,246 | ||||||||||||||||||||||||||||||||||||||||||||
Change in estimates | — | — | — | — | — | — | 1,354 | — | 1,354 | ||||||||||||||||||||||||||||||||||||||||||||
Disposals | (736) | (1,917) | — | (2,241) | (9) | (2) | — | (1,541) | (6,446) | ||||||||||||||||||||||||||||||||||||||||||||
Transfers | 2,280 | 1,512 | 8,453 | 26,303 | 185 | (3,650) | — | — | 35,083 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | 1,257 | 8,004 | 26,213 | (2,456) | 545 | 454 | 824 | 1,026 | 35,867 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 |
22,038 | 194,455 | 553,687 | 111,821 | 19,262 | 39,274 | 14,188 | 28,449 | 983,174 | ||||||||||||||||||||||||||||||||||||||||||||
Additions | 2,672 | 47,846 | 98,046 | 217,988 | 3,207 | 107,226 | — | 20,019 | 497,004 | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized borrowing costs | — | — | — | 16,983 | — | — | — | — | 16,983 | ||||||||||||||||||||||||||||||||||||||||||||
Change in estimates | — | — | — | — | — | — | 3,119 | — | 3,119 | ||||||||||||||||||||||||||||||||||||||||||||
Disposals | — | (2,844) | (746) | (41) | (58) | (56) | — | (1,831) | (5,576) | ||||||||||||||||||||||||||||||||||||||||||||
Transfers | 10,405 | 28,566 | 898 | 57,669 | 2,639 | (100,177) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | 2,131 | 17,466 | 45,923 | 15,237 | 1,563 | 3,275 | 1,202 | 2,692 | 89,489 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 |
$ | 37,246 | $ | 285,489 | $ | 697,808 | $ | 419,657 | $ | 26,613 | $ | 49,542 | $ | 18,509 | $ | 49,329 | $ | 1,584,193 | |||||||||||||||||||||||||||||||||||
Accumulated depreciation: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 |
$ | (4,428) | $ | (25,943) | $ | (109,889) | $ | — | $ | (5,733) | $ | — | $ | (4,040) | $ | (10,488) | $ | (160,521) | |||||||||||||||||||||||||||||||||||
Depreciation expense | (1,047) | (16,373) | (33,378) | — | (973) | — | (914) | (7,530) | $ | (60,215) | |||||||||||||||||||||||||||||||||||||||||||
Disposals | 734 | 1,672 | 60 | — | 70 | — | — | 913 | $ | 3,449 | |||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | (306) | (1,666) | (7,352) | — | (354) | — | (273) | (662) | $ | (10,613) | |||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 |
(5,047) | (42,310) | (150,559) | — | (6,990) | — | (5,227) | (17,767) | (227,900) | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense | (1,497) | (24,209) | (47,717) | — | (1,877) | — | (662) | (12,565) | (88,527) | ||||||||||||||||||||||||||||||||||||||||||||
Disposals | — | 1,613 | — | — | 52 | — | — | 1,372 | 3,037 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | (440) | (4,011) | (11,663) | — | (553) | — | (427) | (1,711) | (18,805) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 |
$ | (6,984) | $ | (68,917) | $ | (209,939) | $ | — | $ | (9,368) | $ | — | $ | (6,316) | $ | (30,671) | $ | (332,195) | |||||||||||||||||||||||||||||||||||
Net book value, December 31, 2022 |
$ | 16,991 | $ | 152,145 | $ | 403,128 | $ | 111,821 | $ | 12,272 | $ | 39,274 | $ | 8,961 | $ | 10,682 | $ | 755,274 | |||||||||||||||||||||||||||||||||||
Net book value, December 31, 2023 |
$ | 30,262 | $ | 216,572 | $ | 487,869 | $ | 419,657 | $ | 17,245 | $ | 49,542 | $ | 12,193 | $ | 18,658 | $ | 1,251,998 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
December 31, 2023 | December 31, 2022 | ||||||||||
Value added taxes recoverable | $ | 11,413 | $ | 10,317 | |||||||
Note receivable (Note 23) |
9,067 | 10,387 | |||||||||
Deposits and others | 8,472 | 3,985 | |||||||||
$ | 28,952 | $ | 24,689 |
December 31, 2023 | December 31, 2022 |
||||||||||
Trade suppliers | $ | 74,877 | $ | 47,868 | |||||||
Payroll and labour related liabilities | 26,421 | 21,008 | |||||||||
Value added tax and other tax payable | 9,142 | 8,040 | |||||||||
Cash-settled equity awards (Note 15(b) and (c)) |
8,796 | 6,684 | |||||||||
Other accrued liabilities | 1,468 | 1,003 | |||||||||
$ | 120,704 | $ | 84,603 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Carrying value, including accrued interest |
||||||||||||||||||||||||||||||||||||||||||||
Description | Currency | Security | Maturity (Months) |
Coupon rate | Principal to be repaid | December 31, 2023 |
December 31, 2022 |
|||||||||||||||||||||||||||||||||||||
Senior Notes | USD | Unsecured | 73 |
6.50% |
$ | 400,000 | $ | 403,274 | $ | 402,453 | ||||||||||||||||||||||||||||||||||
Equipment finance loans | USD | Secured | 15 - 43 |
5.00% - 8.12% |
15,987 | 16,175 | 10,322 | |||||||||||||||||||||||||||||||||||||
Equipment finance loans | EUR | Secured | 26 - 30 |
5.25% |
998 | 1,000 | 1,372 | |||||||||||||||||||||||||||||||||||||
Equipment finance loans | BRL | Unsecured | 2 - 29 |
nil% - 16.63% |
3,279 | 3,409 | 947 | |||||||||||||||||||||||||||||||||||||
Bank loan | BRL | Unsecured | 35 |
CDI + 0.50% |
2,365 | 2,375 | 2,963 | |||||||||||||||||||||||||||||||||||||
Total | $ | 422,629 | $ | 426,233 | $ | 418,057 | ||||||||||||||||||||||||||||||||||||||
Current portion | $ | 20,381 | $ | 15,703 | ||||||||||||||||||||||||||||||||||||||||
Non-current portion | $ | 405,852 | $ | 402,354 |
Year ended December 31, 2023 |
Year ended December 31, 2022 |
||||||||||
Balance, beginning of year |
$ | 418,057 | $ | 59,250 | |||||||
Proceeds from issuance of Senior Notes, net | — | 392,006 | |||||||||
Proceeds from new equipment finance loans | 14,889 | 9,489 | |||||||||
Principal and interest payments | (35,247) | (71,033) | |||||||||
Interest costs, including interest capitalized | 28,282 | 26,666 | |||||||||
Loss on debt modification | — | 1,351 | |||||||||
Foreign exchange | 252 | 328 | |||||||||
Balance, end of year |
$ | 426,233 | $ | 418,057 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
December 31, 2023 | December 31, 2022 |
||||||||||
Gold ounces delivered(1) |
14,005 | 10,082 | |||||||||
Balance, beginning of year |
$ | 86,055 | $ | 94,222 | |||||||
Advances | 3,544 | 3,207 | |||||||||
Accretion expense | 3,032 | 3,407 | |||||||||
Amortization of deferred revenue(2) |
(17,082) | (14,781) | |||||||||
Balance, end of year |
$ | 75,549 | $ | 86,055 | |||||||
Current portion | $ | 17,159 | $ | 16,580 | |||||||
Non-current portion | 58,390 | 69,476 | |||||||||
December 31, 2023 | December 31, 2022 | ||||||||||
Balance, beginning of year |
22,172 | $ | 19,037 | ||||||||
Change in estimates | 3,455 | 1,854 | |||||||||
Accretion expense | 2,703 | 2,191 | |||||||||
Settled | (3,344) | (2,238) | |||||||||
Foreign exchange | 1,701 | 1,328 | |||||||||
Balance, end of year |
$ | 26,687 | $ | 22,172 | |||||||
Caraíba Operations | $ | 21,372 | $ | 18,026 | |||||||
Tucumã Project | 1,365 | 558 | |||||||||
Xavantina Operations | 3,950 | 3,588 | |||||||||
Total | $ | 26,687 | $ | 22,172 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
December 31, 2023 | December 31, 2022 |
||||||||||
Cash-settled equity awards (Note 15(b)) |
$ | 2,549 | $ | 2,256 | |||||||
Withholding, value added tax, and other taxes payable | 8,012 | 5,254 | |||||||||
Provision (Note 26(b)) |
1,622 | 1,578 | |||||||||
Other liabilities | 5,975 | 2,731 | |||||||||
$ | 18,158 | $ | 11,819 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Number of Stock Options |
Weighted Average Exercise Price (CAD) | Number of Stock Options |
Weighted Average Exercise Price (CAD) | ||||||||||||||||||||
Outstanding stock options, beginning of year |
2,781,074 | $ | 15.49 | 4,202,389 | $ | 11.36 | |||||||||||||||||
Issued | 525,138 | 18.00 | 449,248 | 17.80 | |||||||||||||||||||
Exercised | (1,333,199) | 11.28 | (1,812,558) | 6.35 | |||||||||||||||||||
Forfeited | (86,688) | 18.59 | (58,005) | 19.59 | |||||||||||||||||||
Outstanding stock options, end of year |
1,886,325 | $ | 19.56 | 2,781,074 | $ | 15.49 |
Weighted Average Exercise Prices | Number of Stock Options |
Vested and Exercisable Number of Stock Options | Weighted Average Remaining Life in Years | |||||||||||||||||
$10.01 to $20.00 CAD |
1,406,222 | 645,669 | 3.77 | |||||||||||||||||
$20.01 to $24.45 CAD |
480,103 | 461,490 | 1.10 | |||||||||||||||||
$19.56 CAD ($14.79 USD) |
1,886,325 | 1,107,159 | 3.09 |
Year Ended December 31, |
||||||||
2023 | 2022 | |||||||
Expected term (years) | 3.2 | 3.0 | ||||||
Forfeiture rate | — | % | — | % | ||||
Volatility | 54 | % | 60 | % | ||||
Dividend yield | — | % | — | % | ||||
Risk-free interest rate | 3.99 | % | 3.86 | % | ||||
Weighted-average fair value per option | $ | 6.38 | $ | 6.16 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Outstanding balance, beginning of year |
881,788 | 793,043 | |||||||||
Issued | 437,204 | 344,549 | |||||||||
Settled | (238,881) | (212,765) | |||||||||
Forfeited | (112,190) | (43,039) | |||||||||
Outstanding balance, end of year |
967,921 | 881,788 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Outstanding balance, beginning of year |
219,961 | 131,085 | |||||||||
Issued | 87,351 | 88,876 | |||||||||
Outstanding balance, end of year |
307,312 | 219,961 |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Outstanding balance, beginning of year |
263,202 | 171,106 | |||||||||
Issued | 203,537 | 160,320 | |||||||||
Settled | (95,456) | (59,795) | |||||||||
Forfeited | (30,713) | (8,429) | |||||||||
Outstanding balance, end of year |
340,570 | 263,202 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Stock options | $ | 1,574 | $ | 2,091 | |||||||
Performance share unit plan | 4,093 | 3,158 | |||||||||
Deferred share unit plan | 1,756 | 1,087 | |||||||||
Restricted share unit plan | 1,795 | 1,595 | |||||||||
Share-based compensation(1) |
$ | 9,218 | $ | 7,931 |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted average number of common shares outstanding | 94,111,548 | 90,789,925 | |||||||||
Dilutive effects of: | |||||||||||
Stock options | 444,216 | 1,117,529 | |||||||||
Share units | 340,570 | 263,202 | |||||||||
Weighted average number of diluted common shares outstanding(1) |
94,896,334 | 92,170,656 | |||||||||
Net income attributable to owners of the Company |
$ | 92,804 | $ | 101,831 | |||||||
Basic net income per share |
$ | 0.99 | $ | 1.12 | |||||||
Diluted net income per share |
$ | 0.98 | $ | 1.10 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Copper | ||||||||||||||
Sales within Brazil | $ | 24,303 | $ | 52,841 | ||||||||||
Export sales | 300,383 | 313,629 | ||||||||||||
Adjustments on provisional sales(1) |
(4,083) | (15,066) | ||||||||||||
320,603 | 351,404 | |||||||||||||
Gold | ||||||||||||||
Sales | 89,795 | 60,207 | ||||||||||||
Amortization of deferred revenue(2) |
17,082 | 14,781 | ||||||||||||
$ | 106,877 | $ | 74,988 | |||||||||||
$ | 427,480 | $ | 426,392 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Materials | $ | 44,361 | $ | 42,359 | ||||||||||
Salaries and benefits | 60,609 | 50,168 | ||||||||||||
Contracted services | 32,911 | 32,576 | ||||||||||||
Maintenance costs | 31,025 | 26,381 | ||||||||||||
Utilities | 13,574 | 13,092 | ||||||||||||
Other costs | 1,185 | 1,163 | ||||||||||||
Change in inventory (excluding depreciation and depletion)(1) |
(5,269) | 5,321 | ||||||||||||
Cost of production | 178,396 | 171,060 | ||||||||||||
Sales expense | 10,718 | 9,501 | ||||||||||||
Depreciation and depletion | 86,065 | 59,475 | ||||||||||||
Change in inventory (depreciation and depletion) | (4,544) | (819) | ||||||||||||
$ | 270,635 | $ | 239,217 |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Accounting and legal | $ | 2,049 | $ | 2,397 | ||||||||||
Amortization and depreciation | 1,503 | 313 | ||||||||||||
Office and administration | 8,970 | 9,293 | ||||||||||||
Salaries and consulting fees | 29,281 | 24,343 | ||||||||||||
Incentive payments | 6,887 | 8,213 | ||||||||||||
Other | 3,739 | 4,900 | ||||||||||||
$ | 52,429 | $ | 49,459 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Interest on loans and borrowings(1) |
$ | 11,299 | $ | 20,420 | ||||||||||
Accretion of deferred revenue | 3,032 | 3,407 | ||||||||||||
Accretion of provision for rehabilitation and closure costs | 2,703 | 2,191 | ||||||||||||
Interest on lease liabilities | 1,477 | 706 | ||||||||||||
Other finance expenses(2) |
7,311 | 6,499 | ||||||||||||
$ | 25,822 | $ | 33,223 |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Foreign exchange gain on USD denominated debt in Brazil | $ | 18,695 | $ | 3,890 | |||||||
Realized foreign exchange gain (loss) on derivative contracts (note 23) |
11,417 | (12,498) | |||||||||
Unrealized foreign exchange gain on derivative contracts (note 23) |
7,582 | 33,092 | |||||||||
Foreign exchange loss on other financial assets and liabilities | (3,082) | (4,574) | |||||||||
$ | 34,612 | $ | 19,910 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income in the year before tax | $ | 112,351 | $ | 126,383 | |||||||
Tax rate | 27 | % | 27 | % | |||||||
Income tax expense at statutory rate | $ | 30,335 | $ | 34,123 | |||||||
Tax effect of: | |||||||||||
Difference in tax rate of foreign jurisdictions | (11,318) | (15,858) | |||||||||
Non-taxable items | (10,740) | (5,618) | |||||||||
Change in temporary differences not previously recognized | 2,153 | 8,762 | |||||||||
Withholding taxes and other | 7,617 | 1,907 | |||||||||
Income tax expense |
$ | 18,047 | $ | 23,316 |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Current income tax: | |||||||||||
Relating to current income tax charge | $ | 15,992 | $ | 15,043 | |||||||
Deferred income tax: | |||||||||||
Relating to origination and reversal of temporary differences | 2,055 | 8,273 | |||||||||
Income tax expense recognized in net income |
$ | 18,047 | $ | 23,316 | |||||||
Income tax expense recognized in other comprehensive income |
1,262 | 523 | |||||||||
Total income tax expense |
$ | 19,309 | $ | 23,839 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
At the beginning of the year | $ | (6,229) | $ | 2,315 | |||||||
Deferred income tax expense |
(2,055) | (8,273) | |||||||||
Income tax expense recognized in OCI |
(1,262) | (523) | |||||||||
Foreign exchange | (2) | 252 | |||||||||
At the end of the year | $ | (9,548) | $ | (6,229) |
December 31, 2023 |
December 31, 2022 |
||||||||||
Deferred tax assets: | |||||||||||
Non-capital losses | $ | 5,655 | $ | 2,546 | |||||||
Foreign exchange | — | 2,087 | |||||||||
Other | 8,563 | 4,592 | |||||||||
Mine closure and rehabilitation provision | 4,070 | 3,381 | |||||||||
Lease liabilities | 2,805 | 1,511 | |||||||||
21,093 | 14,117 | ||||||||||
Deferred tax liabilities: | |||||||||||
Mineral properties, plant and equipment | (15,566) | (9,364) | |||||||||
Loans and borrowings | (10,045) | (9,321) | |||||||||
Foreign exchange | (3,083) | — | |||||||||
Loans and borrowings | (1,947) | (1,661) | |||||||||
(30,641) | (20,346) | ||||||||||
Net deferred income tax liabilities |
$ | (9,548) | $ | (6,229) | |||||||
Presentation on Consolidated Statements of Financial Position |
|||||||||||
Deferred tax assets | 1,315 | — | |||||||||
Deferred tax liabilities | $ | (10,863) | $ | (6,229) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, 2023 |
Year ended December 31, 2022 |
||||||||||||||||||||||
Brazil | Canada | Brazil | Canada | ||||||||||||||||||||
Mineral properties, plant and equipment | 39,959 | 1,150 | 37,077 | 969 | |||||||||||||||||||
Non-capital losses | — | 74,238 | — | 72,535 | |||||||||||||||||||
Other | — | 33,731 | — | 18,100 | |||||||||||||||||||
$ | 39,959 | $ | 109,119 | $ | 37,077 | $ | 91,604 |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Salaries and short-term benefits(1) |
$ | 10,746 | $ | 11,058 | ||||||||||
Share-based payments(2) |
8,156 | 6,478 | ||||||||||||
$ | 18,902 | $ | 17,536 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
December 31, 2023 | December 31, 2022 | ||||||||||
Cash and cash equivalents | $ | 111,738 | $ | 177,702 | |||||||
Short-term investments | — | 139,700 | |||||||||
Accounts receivable | 5,710 | 10,289 | |||||||||
Derivatives | 11,254 | 3,237 | |||||||||
Note receivable | 17,413 | 20,630 | |||||||||
Deposits and other assets | 8,472 | 3,985 | |||||||||
$ | 154,587 | $ | 355,543 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Non-derivative financial liabilities | Carrying value |
Contractual cash flows | Up to 12 months |
1 - 2 years |
3 - 5 years |
More than 5 years |
||||||||||||||||||||||||||||||||
Loans and borrowings (including interest) | $ | 426,233 | $ | 593,991 | $ | 37,743 | $ | 34,468 | $ | 82,781 | $ | 438,999 | ||||||||||||||||||||||||||
Accounts payable and accrued liabilities | 120,704 | 120,704 | 120,704 | — | — | — | ||||||||||||||||||||||||||||||||
Other non-current liabilities | 8,524 | 23,436 | — | 10,166 | 12,640 | 630 | ||||||||||||||||||||||||||||||||
Leases | 19,603 | 19,579 | 10,929 | 5,521 | 3,019 | 110 | ||||||||||||||||||||||||||||||||
Total | $ | 575,064 | $ | 757,710 | $ | 169,376 | $ | 50,155 | $ | 98,440 | $ | 439,739 |
Contract Description | Notional Amount | Denomination | Weighted average floor | Weighted average cap / forward price | Maturities | |||||||||||||||||||||||||||
Foreign exchange collar (i) | $316.5 million |
USD/BRL | 4.99 | 5.36 | January 2024 - December 2024 | |||||||||||||||||||||||||||
Foreign exchange forward (i) | $60.5 million |
USD/BRL | N/A | 5.15 | January 2024 - December 2024 | |||||||||||||||||||||||||||
Copper collar (iii) | 6,000 tonnes |
$ / lb | $3.60 | $4.03 | January 2024 - June 2024 |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
Year ended December 31, | ||||||||||||||
Net change in non-cash working capital items: | 2023 | 2022 | ||||||||||||
Accounts receivable | $ | 6,918 | $ | (1,870) | ||||||||||
Inventories | (5,269) | (1,709) | ||||||||||||
Other assets | (11,694) | (13,836) | ||||||||||||
Accounts payable and accrued liabilities | 1,673 | (614) | ||||||||||||
$ | (8,372) | $ | (18,029) | |||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Additions to property, plant and equipment by leases | $ | 20,019 | $ | 11,666 | ||||||||||
Non-cash increase in accounts payable in relation to capital expenditures |
28,851 | 10,311 | ||||||||||||
Change in mineral properties, plant and equipment from change in estimates for provision for rehabilitation and closure costs | 3,119 | 1,354 | ||||||||||||
Ero Copper Corp. | ||
Notes to Consolidated Financial Statements | ||
(Tabular amounts in thousands of US Dollars, except share and per share amounts) |
![]() |
TSX: ERO | ||||
NYSE: ERO |
1 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
2 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
3 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
4 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
2023 - Q4 |
2023 - Q3 |
2022 - Q4 |
2023 |
2022 |
||||||||||||||||||||||||||||
Operating Information | ||||||||||||||||||||||||||||||||
Copper (Caraíba Operations) |
||||||||||||||||||||||||||||||||
Ore Processed (tonnes) | 812,202 | 806,096 | 745,850 | 3,231,667 | 2,864,230 | |||||||||||||||||||||||||||
Grade (% Cu) | 1.59 | 1.46 | 1.84 | 1.49 | 1.76 | |||||||||||||||||||||||||||
Cu Production (tonnes) | 11,760 | 10,766 | 12,664 | 43,857 | 46,371 | |||||||||||||||||||||||||||
Cu Production (000 lbs) | 25,926 | 23,734 | 27,918 | 96,688 | 102,230 | |||||||||||||||||||||||||||
Cu Sold in Concentrate (tonnes) | 11,429 | 10,090 | 13,301 | 42,595 | 46,816 | |||||||||||||||||||||||||||
Cu Sold in Concentrate (000 lbs) | 25,197 | 22,244 | 29,323 | 93,906 | 103,211 | |||||||||||||||||||||||||||
Cu C1 cash cost(1)(2) |
$ | 1.75 | $ | 1.92 | $ | 1.59 | $ | 1.80 | $ | 1.55 | ||||||||||||||||||||||
Gold (Xavantina Operations) |
||||||||||||||||||||||||||||||||
Ore Processed (tonnes) |
34,416 | 31,446 | 39,715 | 136,002 | 189,743 | |||||||||||||||||||||||||||
Grade (g / tonne) |
17.18 | 18.72 | 10.17 | 15.13 | 7.61 | |||||||||||||||||||||||||||
Au Production (oz) | 16,867 | 17,579 | 11,786 | 59,222 | 42,669 | |||||||||||||||||||||||||||
Au C1 cash cost(1) |
$ | 413 | $ | 371 | $ | 445 | $ | 422 | $ | 560 | ||||||||||||||||||||||
Au AISC(1) |
$ | 991 | $ | 844 | $ | 1,096 | $ | 957 | $ | 1,124 | ||||||||||||||||||||||
Financial Highlights ($ in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Revenues | $ | 116.4 | $ | 105.2 | $ | 116.7 | $ | 427.5 | $ | 426.4 | ||||||||||||||||||||||
Gross profit | 41.9 | 35.5 | 52.7 | 156.8 | 187.2 | |||||||||||||||||||||||||||
EBITDA(1) |
73.7 | 28.3 | 53.6 | 208.7 | 208.3 | |||||||||||||||||||||||||||
Adjusted EBITDA(1) |
50.3 | 42.9 | 53.2 | 183.5 | 198.3 | |||||||||||||||||||||||||||
Cash flow from operations |
49.4 | 41.9 | 34.0 | 163.1 | 143.4 | |||||||||||||||||||||||||||
Net income |
37.1 | 2.8 | 22.5 | 94.3 | 103.1 | |||||||||||||||||||||||||||
Net income attributable to owners of the Company |
36.5 | 2.5 | 22.2 | 92.8 | 101.8 | |||||||||||||||||||||||||||
Per share (basic) | 0.37 | 0.03 | 0.24 | 0.99 | 1.12 | |||||||||||||||||||||||||||
Per share (diluted) | 0.37 | 0.03 | 0.24 | 0.98 | 1.10 | |||||||||||||||||||||||||||
Adjusted net income attributable to owners of the Company(1) |
20.7 | 17.3 | 22.2 | 82.8 | 83.5 | |||||||||||||||||||||||||||
Per share (basic) | 0.21 | 0.19 | 0.24 | 0.88 | 0.92 | |||||||||||||||||||||||||||
Per share (diluted) | 0.21 | 0.18 | 0.24 | 0.87 | 0.91 | |||||||||||||||||||||||||||
Cash, cash equivalents, and short-term investments | 111.7 | 87.6 | 317.4 | 111.7 | 317.4 | |||||||||||||||||||||||||||
Working capital(1) |
25.7 | 32.8 | 263.3 | 25.7 | 263.3 | |||||||||||||||||||||||||||
Net (cash) debt(1) |
314.5 | 331.8 | 100.7 | 314.5 | 100.7 |
5 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Consolidated Copper Production (tonnes) |
||||||||
Caraíba Operations | 42,000 - 47,000 |
|||||||
Tucumã Operations | 17,000 - 25,000 |
|||||||
Total | 59,000 - 72,000 |
|||||||
Consolidated Copper C1 Cash Costs(1) Guidance |
||||||||
Caraíba Operations | $1.80 - $2.00 |
|||||||
Tucumã Operations | $0.90 - $1.10 |
|||||||
Total | $1.50 - $1.75 |
|||||||
The Xavantina Operations |
||||||||
Au Production (ounces) | 55,000 - 60,000 |
|||||||
Gold C1 Cash Cost(1) Guidance |
$550 - $650 |
|||||||
Gold AISC(1) Guidance |
$1,050 - $1,150 |
|||||||
6 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Caraíba Operations |
||||||||
Growth | $80 - $90 |
|||||||
Sustaining | $100 - $110 |
|||||||
Total, Caraíba Operations |
$180 - $200 |
|||||||
Tucumã Project | ||||||||
Growth | $65 - $75 |
|||||||
Capitalized Ramp-Up Costs | $4 - $6 |
|||||||
Sustaining | $2 - $5 |
|||||||
Total, Tucumã Project | $71 - $86 |
|||||||
Xavantina Operations | ||||||||
Growth | $3 - $5 |
|||||||
Sustaining | $15 - $18 |
|||||||
Total, Xavantina Operations | $18 - $23 |
|||||||
Consolidated Exploration Programs | $30 - $40 |
|||||||
Company Total | ||||||||
Growth | $148 - $170 |
|||||||
Capitalized Ramp-Up Costs | $4 - $6 |
|||||||
Sustaining | $117 - $133 |
|||||||
Exploration | $30 - $40 |
|||||||
Total, Company | $299 - $349 |
7 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Date: | Friday, March 8, 2024 |
||||
Time: | 11:30 am Eastern time (8:30 am Pacific time) | ||||
Dial in: |
North America: 1-800-319-4610, International: +1-604-638-5340
please dial in 5-10 minutes prior and ask to join the call
|
||||
Pre-Register: | Registration link (https://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10022988&linkSecurityString=1a9bbe98f8) (pre-register to bypass the live operator queue) |
||||
Replay: | North America: 1-800-319-6413, International: +1-604-638-9010 | ||||
Replay Passcode: | 0675 |
8 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Reconciliation: | 2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Cost of production |
$ | 39,790 | $ | 39,345 | $ | 40,067 | $ | 153,187 | $ | 146,292 | ||||||||||||||||||||||
Add (less): |
||||||||||||||||||||||||||||||||
Transportation costs & other | 1,853 | 1,614 | 2,362 | 6,539 | 9,019 | |||||||||||||||||||||||||||
Treatment, refining, and other | 7,332 | 6,574 | 9,989 | 28,323 | 36,156 | |||||||||||||||||||||||||||
By-product credits | (3,394) | (3,022) | (6,103) | (12,930) | (22,282) | |||||||||||||||||||||||||||
Incentive payments | (1,693) | (1,609) | (1,092) | (5,668) | (3,914) | |||||||||||||||||||||||||||
Net change in inventory | 1,434 | 2,835 | (861) | 4,407 | (6,040) | |||||||||||||||||||||||||||
Foreign exchange translation and other |
20 | (171) | (47) | (149) | 373 | |||||||||||||||||||||||||||
C1 cash costs | 45,342 | 45,566 | 44,315 | 173,709 | 159,604 | |||||||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | (4,185) | (3,458) | (78) | (11,417) | 12,498 | |||||||||||||||||||||||||||
C1 cash costs including foreign exchange hedges | $ | 41,157 | $ | 42,108 | $ | 44,237 | $ | 162,292 | $ | 172,102 |
Mining |
$ | 26,646 | $ | 27,258 | $ | 26,433 | $ | 102,908 | $ | 94,086 | ||||||||||||||||||||||
Processing | 8,177 | 8,362 | 8,033 | 30,736 | 30,155 | |||||||||||||||||||||||||||
Indirect | 6,581 | 6,394 | 5,963 | 24,672 | 21,489 | |||||||||||||||||||||||||||
Production costs | 41,404 | 42,014 | 40,429 | 158,316 | 145,730 | |||||||||||||||||||||||||||
By-product credits | (3,394) | (3,022) | (6,103) | (12,930) | (22,282) | |||||||||||||||||||||||||||
Treatment, refining and other | 7,332 | 6,574 | 9,989 | 28,323 | 36,156 | |||||||||||||||||||||||||||
C1 cash costs | 45,342 | 45,566 | 44,315 | 173,709 | 159,604 | |||||||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | (4,185) | (3,458) | (78) | (11,417) | 12,498 | |||||||||||||||||||||||||||
C1 cash costs including foreign exchange hedges | $ | 41,157 | $ | 42,108 | $ | 44,237 | $ | 162,292 | $ | 172,102 | ||||||||||||||||||||||
Costs per pound | ||||||||||||||||||||||||||||||||
Payable copper produced (lb, 000) | 25,926 | 23,734 | 27,918 | 96,688 | 102,230 | |||||||||||||||||||||||||||
Mining | $ | 1.03 | $ | 1.15 | $ | 0.95 | $ | 1.06 | $ | 0.92 | ||||||||||||||||||||||
Processing | $ | 0.32 | $ | 0.35 | $ | 0.29 | $ | 0.32 | $ | 0.29 | ||||||||||||||||||||||
Indirect | $ | 0.25 | $ | 0.27 | $ | 0.21 | $ | 0.26 | $ | 0.21 | ||||||||||||||||||||||
By-product credits | $ | (0.13) | $ | (0.13) | $ | (0.22) | $ | (0.13) | $ | (0.22) | ||||||||||||||||||||||
Treatment, refining and other | $ | 0.28 | $ | 0.28 | $ | 0.36 | $ | 0.29 | $ | 0.35 | ||||||||||||||||||||||
Copper C1 cash cost | $ | 1.75 | $ | 1.92 | $ | 1.59 | $ | 1.80 | $ | 1.55 | ||||||||||||||||||||||
(Gain) loss on foreign exchange hedges | $ | (0.16) | $ | (0.15) | $ | — | $ | (0.12) | $ | 0.12 | ||||||||||||||||||||||
Copper C1 cash costs including foreign exchange hedges | $ | 1.59 | $ | 1.77 | $ | 1.59 | $ | 1.68 | $ | 1.67 |
9 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Cost of production |
$ | 7,122 | $ | 6,323 | $ | 4,834 | $ | 25,209 | $ | 24,768 | ||||||||||||||||||||||
Add (less): |
||||||||||||||||||||||||||||||||
Incentive payments | (386) | (320) | (167) | (1,424) | (1,117) | |||||||||||||||||||||||||||
Net change in inventory | 65 | 213 | 258 | 862 | (119) | |||||||||||||||||||||||||||
By-product credits | (248) | (240) | (199) | (827) | (613) | |||||||||||||||||||||||||||
Smelting and refining costs |
113 | 101 | 61 | 353 | 234 | |||||||||||||||||||||||||||
Foreign exchange translation and other |
296 | 453 | 462 | 806 | 742 | |||||||||||||||||||||||||||
C1 cash costs | $ | 6,962 | $ | 6,530 | $ | 5,249 | $ | 24,979 | $ | 23,895 | ||||||||||||||||||||||
Site general and administrative | 1,492 | 1,304 | 1,196 | 5,366 | 3,648 | |||||||||||||||||||||||||||
Accretion of mine closure and rehabilitation provision | 111 | 112 | 106 | 439 | 436 | |||||||||||||||||||||||||||
Sustaining capital expenditure | 5,499 | 4,258 | 4,547 | 16,300 | 14,638 | |||||||||||||||||||||||||||
Sustaining leases | 1,861 | 1,832 | 1,559 | 7,093 | 4,311 | |||||||||||||||||||||||||||
Royalties and production taxes | 785 | 808 | 262 | 2,487 | 1,041 | |||||||||||||||||||||||||||
AISC | $ | 16,710 | $ | 14,844 | $ | 12,919 | $ | 56,664 | $ | 47,969 | ||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||
Mining |
$ | 3,430 | $ | 3,140 | $ | 2,311 | $ | 12,154 | $ | 12,529 | ||||||||||||||||||||||
Processing | 2,315 | 2,165 | 2,067 | 8,433 | 7,917 | |||||||||||||||||||||||||||
Indirect | 1,352 | 1,364 | 1,009 | 4,866 | 3,828 | |||||||||||||||||||||||||||
Production costs | 7,097 | 6,669 | 5,387 | 25,453 | 24,274 | |||||||||||||||||||||||||||
Smelting and refining costs |
113 | 101 | 61 | 353 | 234 | |||||||||||||||||||||||||||
By-product credits | (248) | (240) | (199) | (827) | (613) | |||||||||||||||||||||||||||
C1 cash costs | $ | 6,962 | $ | 6,530 | $ | 5,249 | $ | 24,979 | $ | 23,895 | ||||||||||||||||||||||
Site general and administrative | 1,492 | 1,304 | 1,196 | 5,366 | 3,648 | |||||||||||||||||||||||||||
Accretion of mine closure and rehabilitation provision | 111 | 112 | 106 | 439 | 436 | |||||||||||||||||||||||||||
Sustaining capital expenditure | 5,499 | 4,258 | 4,547 | 16,300 | 14,638 | |||||||||||||||||||||||||||
Sustaining leases | 1,861 | 1,832 | 1,559 | 7,093 | 4,311 | |||||||||||||||||||||||||||
Royalties and production taxes | 785 | 808 | 262 | 2,487 | 1,041 | |||||||||||||||||||||||||||
AISC | $ | 16,710 | $ | 14,844 | $ | 12,919 | $ | 56,664 | $ | 47,969 | ||||||||||||||||||||||
Costs per ounce | ||||||||||||||||||||||||||||||||
Payable gold produced (ounces) | 16,867 | 17,579 | 11,786 | 59,222 | 42,669 | |||||||||||||||||||||||||||
Mining | $ | 203 | $ | 179 | $ | 196 | $ | 205 | $ | 294 | ||||||||||||||||||||||
Processing | $ | 137 | $ | 123 | $ | 175 | $ | 142 | $ | 186 | ||||||||||||||||||||||
Indirect | $ | 80 | $ | 78 | $ | 86 | $ | 82 | $ | 90 | ||||||||||||||||||||||
Smelting and refining | $ | 7 | $ | 6 | $ | 5 | $ | 6 | $ | 5 | ||||||||||||||||||||||
By-product credits | $ | (14) | $ | (15) | $ | (17) | $ | (13) | $ | (15) | ||||||||||||||||||||||
Gold C1 cash cost | $ | 413 | $ | 371 | $ | 445 | $ | 422 | $ | 560 | ||||||||||||||||||||||
Gold AISC | $ | 991 | $ | 844 | $ | 1,096 | $ | 957 | $ | 1,124 |
10 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Net Income |
$ | 37,052 | $ | 2,811 | $ | 22,472 | $ | 94,304 | $ | 103,067 | ||||||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Finance expense |
5,284 | 8,017 | 12,290 | 25,822 | 33,223 | |||||||||||||||||||||||||||
Finance income |
(1,989) | (2,976) | (5,041) | (12,465) | (10,295) | |||||||||||||||||||||||||||
Income tax expense (recovery) |
8,415 | (807) | 7,540 | 18,047 | 23,316 | |||||||||||||||||||||||||||
Amortization and depreciation |
24,980 | 21,299 | 16,361 | 83,024 | 58,969 | |||||||||||||||||||||||||||
EBITDA | $ | 73,742 | $ | 28,344 | $ | 53,622 | $ | 208,732 | $ | 208,280 | ||||||||||||||||||||||
Foreign exchange (gain) loss |
(24,871) | 13,937 | (4,569) | (34,612) | (19,910) | |||||||||||||||||||||||||||
Share based compensation | 477 | (1,185) | 4,123 | 9,218 | 7,931 | |||||||||||||||||||||||||||
Unrealized loss (gain) on copper derivative contracts | 955 | 1,814 | — | 115 | — | |||||||||||||||||||||||||||
Incremental COVID-19 costs | — | — | — | — | 1,956 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 50,303 | $ | 42,910 | $ | 53,176 | $ | 183,453 | $ | 198,257 |
11 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
Reconciliation: |
2023 - Q4 | 2023 - Q3 | 2022 - Q4 | 2023 | 2022 | |||||||||||||||||||||||||||
Net income as reported attributable to the owners of the Company |
$ | 36,549 | $ | 2,525 | $ | 22,159 | $ | 92,804 | $ | 101,831 | ||||||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Share based compensation | 477 | (1,185) | 4,123 | 9,218 | 7,931 | |||||||||||||||||||||||||||
Unrealized foreign exchange (gain) loss on USD denominated balances in MCSA |
(10,308) | 9,481 | (1,782) | (15,296) | 25 | |||||||||||||||||||||||||||
Unrealized foreign exchange (gain) loss on foreign exchange derivative contracts |
(9,852) | 7,530 | (3,017) | (7,552) | (32,960) | |||||||||||||||||||||||||||
Unrealized loss on interest rate derivative contracts |
951 | 1,808 | — | 115 | — | |||||||||||||||||||||||||||
Incremental COVID-19 costs | — | — | — | — | 1,944 | |||||||||||||||||||||||||||
Tax effect on the above adjustments | 2,932 | (2,873) | 731 | 3,472 | 4,726 | |||||||||||||||||||||||||||
Adjusted net income attributable to owners of the Company | $ | 20,749 | $ | 17,286 | $ | 22,214 | $ | 82,761 | $ | 83,497 | ||||||||||||||||||||||
Weighted average number of common shares | ||||||||||||||||||||||||||||||||
Basic | 98,099,791 | 93,311,434 | 91,522,358 | 94,111,548 | 90,789,925 | |||||||||||||||||||||||||||
Diluted | 98,482,755 | 94,009,268 | 92,551,916 | 94,896,334 | 92,170,656 | |||||||||||||||||||||||||||
Adjusted EPS | ||||||||||||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.19 | $ | 0.24 | $ | 0.88 | $ | 0.92 | ||||||||||||||||||||||
Diluted | $ | 0.21 | $ | 0.18 | $ | 0.24 | $ | 0.87 | $ | 0.91 |
12 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||
Current portion of loans and borrowings | $ | 20,381 | $ | 11,764 | $ | 15,703 | ||||||||||||||
Long-term portion of loans and borrowings | 405,852 | 407,656 | 402,354 | |||||||||||||||||
Less: | ||||||||||||||||||||
Cash and cash equivalents | (111,738) | (44,757) | (177,702) | |||||||||||||||||
Short-term investments | — | (42,843) | (139,700) | |||||||||||||||||
Net (cash) debt | $ | 314,495 | $ | 331,820 | $ | 100,655 |
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Current assets | $ | 199,487 | $ | 174,113 | $ | 392,427 | |||||||||||
Less: Current liabilities | (173,800) | (141,284) | (129,121) | ||||||||||||||
Working capital |
$ | 25,687 | $ | 32,829 | $ | 263,306 | |||||||||||
Cash and cash equivalents | 111,738 | 44,757 | 177,702 | ||||||||||||||
Short-term investments | — | 42,843 | 139,700 | ||||||||||||||
Available undrawn revolving credit facilities | 150,000 | 150,000 | 75,000 | ||||||||||||||
Available liquidity | $ | 261,738 | $ | 237,600 | $ | 392,402 |
13 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
14 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |
TSX: ERO | |||||
NYSE: ERO |
15 |
Ero Copper Corp | ||||
625 Howe Street | Suite 1050 | Vancouver | BC | V6C 2T6 | Canada |